CANBERA (dpa-AFX) - Australian property firm REA Group (REA.AX), owned by Rupert Murdoch's News Corp., announced its decision to end the pursuit of UK-based Rightmove (RMV.L) after the property portal rejected the fourth acquisition proposal.
'The lack of meaningful engagement and the consistent lack of information provided by Rightmove impeded the ability to progress discussions and work together towards a recommended transaction, within the timetable permitted,' REA stated.
According to Reuters, the final bid of 6 billion pounds, equivalent to $8.1 billion, came after an initial offer of 5.6 billion pounds. The latest offer, comprised of 346 pence in cash, 0.0417 new REA shares, and a special dividend of 6 pence in cash.
Owen Wilson, CEO of REA, said, 'We were disappointed with the limited engagement from Rightmove that impeded our ability to make a firm offer within the timetable available. They had nothing to lose by engaging with us.'
Rightmove's board rejected the offer unanimously on the grounds that it 'materially undervalued Rightmove and its future prospects,' adding that shareholders interest would be better served with the company's strategic plan, involving expansion into mortgage-broking and commercial property.
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